Ask and Bid Prices What This is ? Best Movies For Forex Beginner’s
All right so ask unbid prices when you go on a holiday overseas you usually want to exchange your home currency for the domestic currency of the country you’re traveling to. And in order to do that you would go to a 4 x exchange booth and these booths will always have two different prices. We sell price and we buy price and depending on the transaction you’re trying to make. You’ll be quoted at one of the two prices. So if you’re exchanging your home currency for the domestic currency of the country traveling to. You’ll be quoted at one of these two prices. And when you come back and you have all this excess currency of that other country and you want to exchange it back into your home currency you will be quoted at the other price. Same principle applies in the Forex market. Any Forex currency actually has two prices. Ask price and the bid price the ask price will always be above the bid price and the ask price is the price that you would be quoted at. If you want to buy the base currency if you want to sell the best currency you will be using the bid price. So here we are using the British pound Australian dollar as an example and in that currency the British pound is the base currency the Australian dollar is the core currency. So if you want to buy British pounds then you will be using the ask price. And this means that for every one British pound you would have to pay 1.8 873 Australian dollars. Now if you want to sell British pounds then you will be using the price. And for every one British pound you would get one point eight eight six six Australian dollars. So as you can see you’re always paying more to buy than you’re getting when you’re selling. And that’s the principal Forex market.